TUTORIAL 2

26/10/21

Sometimes changing a firm’s strategy requires adjusting the labor force. Among the
strategies, outsourcing, and offshoring are most popular and being used widely.
Explain the companies that use outsourcing and offshoring in their business strategy
and why it benefited them. (10 M)
Outsourcing is the process of hiring a third party to perform services or produce goods that would
otherwise be done by the company's own employees and staff in-house. Outsourcing is a cost-
cutting approach that companies utilize to save money. It increases productivity. reduces costs,
speeds up product development, and frees up time for firms to focus on their core competencies
"fundamentals capabilities "It enables a firm to achieve its objectives, create value, and tap into a
reservoir of talent. reduce risk and conserve resources Advertising, office, and other types of
outsourcing are the best examples. website development and warehouse cleaning. Most business
owners delegate authority to outsourced specialists when it comes to bookkeeping, maintenance,
and recruitment.

Relocating product and/or service manufacture to a different nation is known as offshoring.

Outsourcing, on the other hand, may or may not involve a foreign location, but it does entail
contracting out work to a third party. Businesses that opt to move their operations abroad will
surely benefit both in the short and long run. By taking duties like as bookkeeping and marketing
from the hands of business owners, offshoring allows them to focus on strategizing business
growth while avoiding the possibility of a decline in quality of work. Offshoring and outsourcing
allow you to reinvest in your business. Instead of wasting your allotted labor fund, invest it in your
company. You will be able to expand your business. As a result of this, services and offerings
Simply put, you're now putting money into your business. instead, then just paying for it.
Organizational culture is where the employees shared the same values, beliefs, and
assumptions people in an organization. Identify three companies that have good
organizational culture and how they keep the culture to motivate the employees to
work harder. (10 M)
Google has a long history in the sector. It is credited for being one of the first companies to
transform a traditional office atmosphere into a buzzing one. It offers Google employees perks
such as free meals, employee engagement trips, games, parties, gyms, a dog-friendly
environment, and laundry services. as well as other services What distinguishes Google from
other firms is that it doesn't simply build an online presence. It focuses on establishing a superb
organizational culture in the workplace. There's a proverb that goes something like this: ‘We’ll
look after you while you focus on your work,' says Google.

Twitter is one of the most successful digital firms in the world, and it knows how to keep its
employees happy. Employees are talking about the coolest work environment they've ever
encountered. Twitter employees benefit from a variety of amenities, including warm and friendly
coworkers, rooftop meetings, open communication with management, free lunches, and an onsite
gym. Employees have a sweet spot in their hearts for. According to the report, companies that
are built on a relaxed, learning-based, and inviting work environment are more likely to succeed,
in this research.

Zappos is noted for both its work environment and its shoe quality. Its tagline is 'Powered by
Service,' which means it seeks to provide world-class service to customers. The hiring process is
set up in such a way that the candidate who best reflects the company's culture gets chosen. and
ethos takes precedence over everything else. Tony Hsieh, the CEO of Zappos, wants new hires
to have a positive attitude. a customer-centric strategy Perhaps this is why they supply food
throughout the first week of training. Individuals who believe the position isn't a suitable fit for
them will receive $2000.
Explain four basic types of organizational culture and their examples. (10M)
Adhocracy culture
Primary focus: Innovative and risk-taking

Defining qualities: Flexibility and discretion; external focus and differentiation

Description: The heart of adhocracy cultures is innovation. These are the companies who are on
the leading edge of their industry, looking to invent the next big thing before anybody else has
even asked the right questions. To accomplish so, they must take risks. Employees are
encouraged to think independently in adhocracy settings; therefore, individuality is appreciated.
They are encouraged to think imaginatively and give their ideas. New concepts must be related
to market expansion and company success. Because this type of organizational culture falls under
the category of external focus, it has a high rate of success.

Example: Facebook
Market culture
Primary focus: Growth and competitive

Defining qualities: Stability and control; external focus and differentiation

Description: In today's market culture, profitability is a top goal. Everything is measured in terms
of the bottom line; each position has a goal that is in line with the company's ultimate goal, and
employees and leadership roles are typically separated by a wide margin. These are the ones.
Organizations that care more about exterior success than internal satisfaction. Quotas must be
met, targets must be met, and results must be achieved in a market culture.

Example: Amazon
Clan culture
Primary focus: teamwork and mentorship

Defining qualities: Flexibility and discretion; internal focus and integration

Description: A clan culture is people-focused in the sense that the firm feels like one big happy
family. This is a highly collaborative workplace where everyone is valued, and communication is
a top priority. Clan culture typically coexists with horizontal culture. organization that aids in the
dismantling of barriers between the C-suite and employees while also assisting in the recruitment
of new talent. Mentorship is encouraged. These companies are proactive and adaptable, as
evidenced by their actions and their ability to adapt.

Example: Google
Hierarchy culture
Primary focus: Stable and structure

Defining qualities: Stability and control; internal focus and integration

Description: Companies with a hierarchical culture tend to continue with the existing
organizational structure. These are companies that prioritize internal organization, with a clear
line of command and several management tiers that separate employees from executives. In
most cases, employees are expected to follow a strict dress code in addition to a tight structure.
Hierarchy Cultures follow a system of rules, which makes them predictable and risk averse.

Example: The military

Why it is important for a firm to be agile and how the agility can be achieved (10M)
Today, every firm is a software business, and organizations must generate products and services
faster and better than their competitors in order to compete in today's market. To accomplish so,
they'll need to build a modern software factory that can quickly respond to customer needs’
effectively. Long timescales from concept to completion are no longer the norm, and change is
the only constant. Now, everything happens quickly, forcing firms to change on the go.

According to a Freeform Dynamics survey of senior business and IT executives commissioned

by CA Technologies on how they are modernizing software strategies and practices to better
compete in the app economy, the top 25% (the "Masters") embrace the key principles of agility,
automation, and customization to better compete in the app economy. security, and insights with
a 70 percent increase in profit and a 50 percent increase in revenue, these companies outperform
their competitors.

According to the report, 91% of master’s are implementing agile methods across their entire
organization. Modern software development and delivery necessitates the ability to be flexible,
adapt rapidly, and respond to new and changing demands. Organizations can adjust to changes
in demand. In an agile setting, you can pivot as needed. Organizations must be able to establish
this to do so. a strong foundation that acts as the company's anchor during times of transition
Explain how the employees can be the competitive advantages for a firm (10M)
Competitive advantage is influenced by several things. On the one hand, the resources' physical
position could be a consideration. It could, on the other hand, be a question of product quality.
The crucial thing is that it should be difficult to duplicate, if not impossible. Competitors will quickly
undermine your advantage. Whether it's providing direct services or inventing new products,
People, not technologies, are at the heart of all differences. Here are a few more examples, all of
which may be found on the internet, persons who are involved.

Productivity is the amount of output available to a company for each unit of input into the
production (or transportation, or sales, or whatever) system. The tools and other physical
resources available, as well as the personnel' abilities and expertise, determine productivity.

Competitive advantage changes throughout time. It is feasible for a firm to obtain it only to lose it
later. Competitors never stop moving. A continual influx of new ideas and the adoption of those
that contribute to advancement are essential to sustain competitive advantage. People when they
are in the right environment or climate, they can innovate. It is the obligation of and the
responsibility of management to create that climate and to harness the ideas.

Quality meets the needs of the customers. High-quality services are those that meet or surpass
customer expectations. High-quality goods are those that meet or exceed the advertised
requirements. Customers are ecstatic about the product's quality. People are more essential than
procedures and instruments. Equally vital are those who use the tools and adhere to the methods.

Companies trade to make money. Not every company is the same, and not every company in the
same industry can make above-average earnings. A competitive advantage is defined as a
company's ability to retain above-average earnings when compared to its competitors. This is a
competitive market. Physical and people resources are used to gain an advantage, but building
competitiveness is also important. It is much easier to gain an advantage through personnel than
it is to invest in new instruments and procedures. In many circumstances, investing in both to
some degree or another is required.